Settlements over toxic Chinese drywall OK'd

Associated Press

Published: Saturday, February 9, 2013 at 1:00 a.m.

Last Modified: Friday, February 8, 2013 at 8:25 p.m.

NEW ORLEANS - A federal judge has approved five class-action settlements that call for a Chinese drywall manufacturer and others to pay hundreds of millions of dollars to repair homes damaged by the product, attorneys for thousands of Gulf Coast property owners said.

The decision by U.S. District Judge Eldon Fallon in New Orleans stems from a hearing in November held to help him gauge the fairness of five separate but related settlement agreements between plaintiffs' lawyers and companies that made, supplied or installed the defective Chinese drywall.

An investigation by the Herald-Tribune and the watchdog journalism organization ProPublica -- the first to bring the extent of the issue to national attention -- showed that nearly 7,000 homes were built with bad drywall nationwide, but enough material was imported to build at least 100,000 homes.

The problems it has caused range from a foul odor to corrosion of pipes, wiring, airconditioners and appliances. Many homeowners also said their families suffered health problems.

After Fallon's ruling, plaintiffs' attorney Arnold Levin said he was "thrilled that the court has issued an order and is hopeful that homeowners will now be able to get their homes remediated and put their lives back together."

Levin said the settlements will benefit more than 10,000 property owners and are estimated to be in excess of $1 billion, most of which will be paid by Knauf Plasterboard Tianjin Co.

Knauf agreed to create an uncapped fund to pay to repair roughly 5,200 properties, mostly in Florida, Louisiana, Mississippi and Alabama. A separate fund capped at $30 million will pay for other types of losses, including those by people who blame drywall for health problems.

Attorneys' fees and costs paid by Knauf are capped at $160 million and will not be deducted from homeowners' shares of the settlement money.

A total of about 300 plaintiffs have opted out of the five settlements, according to Levin.

Fallon, who presides over more than 10,000 claims involving Chinese drywall, refused in September to dismiss property owners' claims against drywall maker, Taishan Gypsum Co. Ltd., a company with ties to the Chinese government

Taishan appealed, arguing that U.S. courts don't have jurisdiction over claims against it.

<p><em>NEW ORLEANS</em> - A federal judge has approved five class-action settlements that call for a Chinese drywall manufacturer and others to pay hundreds of millions of dollars to repair homes damaged by the product, attorneys for thousands of Gulf Coast property owners said.</p><p>The decision by U.S. District Judge Eldon Fallon in New Orleans stems from a hearing in November held to help him gauge the fairness of five separate but related settlement agreements between plaintiffs' lawyers and companies that made, supplied or installed the defective Chinese drywall.</p><p>An investigation by the Herald-Tribune and the watchdog journalism organization ProPublica -- the first to bring the extent of the issue to national attention -- showed that nearly 7,000 homes were built with bad drywall nationwide, but enough material was imported to build at least 100,000 homes.</p><p>The problems it has caused range from a foul odor to corrosion of pipes, wiring, airconditioners and appliances. Many homeowners also said their families suffered health problems.</p><p>Fallon's order certified settlements for Interior/Exterior Building Supply LP; Banner; L&W Supply Corp.; Knauf and Global participating builders, suppliers and installers.</p><p>After Fallon's ruling, plaintiffs' attorney Arnold Levin said he was "thrilled that the court has issued an order and is hopeful that homeowners will now be able to get their homes remediated and put their lives back together."</p><p>Levin said the settlements will benefit more than 10,000 property owners and are estimated to be in excess of $1 billion, most of which will be paid by Knauf Plasterboard Tianjin Co.</p><p>Knauf agreed to create an uncapped fund to pay to repair roughly 5,200 properties, mostly in Florida, Louisiana, Mississippi and Alabama. A separate fund capped at $30 million will pay for other types of losses, including those by people who blame drywall for health problems.</p><p>Attorneys' fees and costs paid by Knauf are capped at $160 million and will not be deducted from homeowners' shares of the settlement money.</p><p>A total of about 300 plaintiffs have opted out of the five settlements, according to Levin.</p><p>Fallon, who presides over more than 10,000 claims involving Chinese drywall, refused in September to dismiss property owners' claims against drywall maker, Taishan Gypsum Co. Ltd., a company with ties to the Chinese government</p><p>Taishan appealed, arguing that U.S. courts don't have jurisdiction over claims against it.</p>